Case Study

Organizational Restructuring for a $10B Oil and Gas Company

"SLKone improved the productivity and connectivity of business support functions by designing and aligning departmental structures within the organization"

Situation

  • The client was a $10B oil and gas company, spanning nine product lines and seven regions
  • Company had completed a merger with a like-sized competitor 18 months previously
  • Profitability was lagging and a large number of quality issues were arising

Bespoke Solutions

  • SLKone reviewed key activities for rationalization and efficiency opportunities to increase productivity and reduce overall functional cost
  • Performed an organization structure analysis that identified excessive layers and low spans of control across the organization
  • In addition, our analysis revealed that 800 quality employees existed relative to a 400 person expectation
  • Interviews were performed with leadership to identify improvement opportunities and work sessions
  • Established a Project Management Office and coordinated opportunities
  • Designed roles and responsibilities and delineation of activities

Leading With Results

  • 20% reduction in the number of audits performed by consolidating the quality compliance audits performed and necessitated per site
  • Factor of 3, the reduction in the number of items inspected after expanding the ‘Supplier Self Release’ program and Skip Lot receiving inspection policies
  • 30% increase in the span of control and two layers removed from the organization with the new company structure
  • 25% overall productivity gains were achieved, resulting in $20M in functional spend reduction
Case studies and expertise may represent projects and engagements performed by SLKone team members prior to their employment at SLKone
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